What do you do if your collaboration with a FinTech partner hits a roadblock?

The personnel, expertise, and financial resources needed to roll out a successful fintech partnership are important. Big banks have large teams of third-party risk management personnel dedicated to constantly monitoring these sorts of relationships. Smaller banks often do not have redundancy in expertise and depend on multi-hatted personnel, making employee turnover an even bigger threat. Make sure bank personnel have sufficient experience with the type of products and services offered, and plan realistically for sufficient oversight. Utilize the services of outside counsel and compliance consultants where appropriate. As you navigate these discussions, keep in mind one of the regulators’ favorite phrases: “commensurate with risk.”

Anytime a FinTech partner is stuck on a problem, potential problems are miscommunication, scope increase, and erosion of trust. Sustain these efficiently through an early-warning system based on a ‘signal dashboard,’ where key milestones are flag, weekly ‘get-togethers’ under the title of ‘alignment workshop,’ and an ‘open-door policy’ where employees can give anonymous feedback on factors not evident on the surface. Such measures are taken to ensure that problem solving is as transparent and too as flexible as possible.

1. Compile Data: Collect Data: To begin, compile all pertinent data pertaining to the problem. This covers all recent correspondence, project updates, reporting of errors, and input from both parties. Conversation Participants: To obtain a thorough understanding of the issue, speak with important stakeholders from both your team and the FinTech partner. This aids in comprehending other viewpoints. 2. Classify the Problem: Technical error: Assess whether technical factors, such as software malfunctions, integration problems, or system defects, are the cause of the issue. Check for system notifications, performance metrics, or error logs. Communication Breakdown: Determine whether there was any misunderstanding or a lack of clarity.

When a FinTech collaboration hits a roadblock, start by identifying the issue—whether it’s a misalignment, communication breakdown, or technical challenge. Communicate openly with your partner to understand their perspective and discuss solutions. Assess the impact on your project, adjust plans as needed, and document any changes. If necessary, involve a mediator to facilitate resolution. Evaluate if the partnership remains beneficial and learn from the experience to prevent future issues. Effective problem-solving can enhance the collaboration and lead to better outcomes.

Regulators have been paying very close attention to “banking-as-a-service” relationships recently, and fintech relationships are now drawing heightened scrutiny. Any bank involved with a fintech partner now needs to pay close attention to signals from the regulators, especially updated guidance, public commentary, and enforcement actions. Banks should review enforcement actions involving fintech partnerships for common themes. Keep track of the regulatory feedback on others’ fintech partnerships and make sure those elements are used to update and enhance the bank’s overall approach.

An obstacle may occasionally indicate that you should review and realign your objectives with those of your FinTech partner. Review?the partnership's initial goals and assess if they are?still applicable and attainable. Making sure that everyone is working toward the same goal and that no one's own objectives are unintentionally harming the relationship is crucial. To get back on track, you should?modify your approach.

A partnership should be beneficial to both parties. This can be in different areas such as knowledge, profit, or simply a willingness to help. The primary focus should be leveraging expertise where both partners can find common ground and work together with great satisfaction. Do not hesitate to share knowledge it is your biggest asset.

Utilizing both parties' skills might be crucial in overcoming obstacles in the intricate realm of financial technology. Each couple contributes special abilities and information that can be used to overcome difficult obstacles. Combining these skills—technical expertise, regulatory knowledge, or market comprehension—can result in potent solutions that advance the collaboration.

Now that the issue has been identified and a cooperative strategy has been established, it is time to organize specific next steps. Technical adjustments, modifications to communication protocols, or tactical shifts could all be part of this. The plan should?be quantifiable, time-bound, and executable in whatever form it takes. Using?a structured method?ensures that all parties are dedicated to finding a solution and can monitor the process as it moves along.

Following the execution of your action plan, keep a close eye on developments to ensure?the obstacle is being successfully removed. Regularly communicating?with your FinTech partner will help?steer the partnership in the right direction and enable necessary adjustments. By closely monitoring developments, you can recognize any potential new obstacles and celebrate little victories along the way, maintaining the partnership's resilience and vitality.